Exhibit 99.1

		News Release
		Contacts:
		Steve Dale		Judith T. Murphy
		Media		Investors/Analysts
		(612) 303-0784		(612) 303-0783

U.S. BANCORP REPORTS NET INCOME
FOR THE THIRD QUARTER OF 2010

Achieves Record Total Net Revenue of $4.6 Billion

          MINNEAPOLIS, October 20, 2010 — U.S. Bancorp (NYSE: USB) today reported net income of $908 million for the third quarter of 2010, or $.45 per diluted common share. Earnings for the third quarter were driven by record total net revenue of $4.6 billion. Highlights for the third quarter of 2010 included:

Ø

Strong new lending activity of $54.8 billion during the third quarter, including:

	§		$12.1 billion of new commercial and commercial real estate commitments
	§		$18.8 billion of commercial and commercial real estate commitment renewals
	§		$1.4 billion of lines related to new credit card accounts
	§		$22.5 billion of mortgage and other retail originations

Ø

Average total loan growth of 5.8 percent (a decline of .4 percent excluding acquisitions) over the third quarter of 2009

	§		Average total loan growth of .7 percent over the second quarter of 2010
	§		Average total commercial loan growth of 1.0 percent over the prior quarter, first linked quarter increase since the fourth quarter of 2008

Ø

Significant growth in average deposits of 9.8 percent (2.7 percent excluding acquisitions) over the third quarter of 2009, including:

	§		7.4 percent growth in average noninterest-bearing deposits
	§		16.3 percent growth in average total savings deposits

	Ø		Total net revenue growth of 7.9 percent over the third quarter of 2009
	Ø		Net interest income growth of 14.8 percent over the third quarter of 2009, driven by a 7.6 percent increase in average earning assets and growth in lower cost core deposit funding
	Ø		Net interest margin of 3.91 percent for the third quarter of 2010, compared with 3.67 percent in the third quarter of 2009 (and 3.90 percent in the second quarter of 2010)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 2

Ø

Strong year-over-year growth in payments-related fee income, commercial products revenue and mortgage banking revenue, driven by:

	§		Higher merchant processing services revenue (6.0 percent), corporate payment products revenue (5.5 percent) and credit and debit card revenue (2.6 percent)
	§		A 25.5 percent increase in commercial products revenue (principally syndication revenue, standby letters of credit fees and commercial loan fees)
	§		Record mortgage production of $16.6 billion, leading to a 12.3 percent increase in mortgage banking revenue

	Ø		Positive operating leverage on a linked quarter basis
	Ø		Decreased net charge-offs and nonperforming assets on a linked quarter basis. Provision for credit losses equal to net charge-offs.

	§		Fourth consecutive quarterly decrease in the provision for credit losses
	§		Net charge-offs declined 10.7 percent from the second quarter of 2010
	§		Nonperforming assets (excluding covered assets) decreased 4.6 percent from the second quarter of 2010
	§		Early and late stage loan delinquencies (excluding covered loans) as a percentage of ending loan balances declined in most loan categories on a linked quarter basis
	§		Allowance to period-end loans (excluding covered loans) was 3.10 percent at September 30, 2010, compared with 3.18 percent at June 30, 2010 (and 2.88 percent at September 30, 2009)
	§		Allowance to nonperforming assets (excluding covered assets) was 153 percent at September 30, 2010, compared with 146 percent at June 30, 2010 (and 134 percent at September 30, 2009)

Ø

Capital generation continues to strengthen capital position; ratios at September 30, 2010 were:

	§		Tier 1 common equity ratio of 7.6 percent
	§		Tier 1 capital ratio of 10.3 percent
	§		Total risk based capital ratio of 13.3 percent

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 3

EARNINGS SUMMARY																														Table 1
														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD				Percent
($ in millions, except per-share data)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Net income attributable to U.S. Bancorp		$	908			$	766			$	603				18.5				50.6			$	2,343			$	1,603				46.2
Diluted earnings per common share		$	.45			$	.45			$	.30				—				50.0			$	1.24			$	.66				87.9
Return on average assets (%)			1.26				1.09				.90												1.11				.81
Return on average common equity (%)			12.8				13.4				10.0												12.3				7.7
Net interest margin (%)			3.91				3.90				3.67												3.90				3.62
Efficiency ratio (%)			51.9				52.4				47.5												51.1				48.1
Tangible efficiency ratio (%) (a)			49.9				50.4				45.3												49.1				45.9
Dividends declared per common share		$	.05			$	.05			$	.05				—				—			$	.15			$	.15				—
Book value per common share (period-end)		$	14.19			$	13.69			$	12.38				3.7				14.6

     Net income attributable to U.S. Bancorp was $908 million for the third quarter of 2010, 50.6 percent higher than the $603 million for the third quarter of 2009 and 18.5 percent higher than the $766 million for the second quarter of 2010. Diluted earnings per common share of $.45 in the third quarter of 2010 were $.15 higher than the third quarter of 2009 and equal to the previous quarter. Return on average assets and return on average common equity were 1.26 percent and 12.8 percent, respectively, for the third quarter of 2010, compared with .90 percent and 10.0 percent, respectively, for the third quarter of 2009. Significant items in the third quarter of 2009 that impact the comparison of results included provision for credit losses in excess of net charge-offs of $415 million, net securities losses of $76 million and a $39 million gain related to the Company’s investment in Visa Inc. (NYSE: V). Diluted earnings per common share for the second quarter of 2010 included $.05 related to the issuance of perpetual preferred stock in exchange for certain income trust securities, net of related debt extinguishment costs. Additional significant items in the second quarter of 2010 included provision for credit losses in excess of net-charge-offs of $25 million, net securities losses of $21 million and a $28 million gain related to the Company’s investment in Visa Inc.

     U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Our third quarter results, once again, reflected the Company’s financial strength, fundamental operating model and business line momentum, as record total net revenue and reduced credit costs drove third quarter net income of $908 million, or $.45 per diluted common share. Growth in total net revenue year-over-year can be

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 4

attributed to an increase in net interest income, the result of higher earning assets and an expanded net interest margin. Noninterest income grew, albeit at a slower pace, year-over-year, as increases in payments-related revenue and our other fee-based businesses were partly offset by expected headwinds from recent legislative actions and current economic conditions.

     “Although total average loans, excluding acquisitions, were down slightly year-over-year, the Company recorded an increase in average loans quarter-over-quarter. Importantly, average commercial loans were higher on a linked quarter basis, as the utilization rate on commercial commitments stabilized. This is the first linked quarter increase in average commercial loans since the fourth quarter of 2008.

     “Credit quality continued to show noticeable improvement this quarter, as net charge-offs and nonperforming assets declined. The provision for credit losses was equal to net charge-offs in the third quarter, as the need to build the allowance for credit losses diminished with the quarter’s improved credit trends and relative stabilization of economic conditions. As I indicated last quarter, we have reached the inflection point in credit quality. Credit costs peaked for our Company in the first quarter of 2010. Despite this on-going improvement in credit quality, we did not reduce the allowance for credit losses this quarter, as our consumer loans continued to grow and the economy, although showing signs of stability, continues to hold a degree of uncertainty with high unemployment and a challenging real estate market. Moreover, as we move through this cycle, we are mindful of the need to continue to protect our fortress balance sheet.

     “In regard to the mortgage industry and recent questions concerning the validity of some foreclosures, I would like to reiterate our Company’s primary goal, which is to keep borrowers in their homes whenever possible. We actively participate in a number of loan modification programs that help to establish affordable payment options for our customers. Unfortunately, in some instances foreclosure, although a last resort effort, is a necessary step. We routinely review our procedures and we have confirmed that we have strong processes and controls in place to ensure that our affidavits are accurate and that no one is wrongfully foreclosed upon. We are able to closely manage the foreclosure process internally, given the manageable size and quality of our portfolio. We will continue to review our processes going forward and comply with any information requests received from regulatory and governmental authorities. We do believe, however, that a blanket foreclosure moratorium should be avoided in the interest of the national economic recovery.

     “Our Company’s capital position remains strong, and growing, with a Tier 1 common equity ratio of 7.6 percent and a Tier 1 capital ratio of 10.3 percent at September 30th. Raising the dividend remains a top priority for our management team and board of directors. We continue, however, to wait for final regulatory

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 5

capital guidelines to be established. Our current capital position and our ability to generate new capital each quarter through earnings give us confidence that we can meet or exceed any capital requirements that may be forthcoming, and be one of the first banks to gain regulatory approval to raise our dividend.

     “On September 15th, our management team hosted an investor conference in New York City. The theme of the day was “positioned to win,” and the day’s presentations led the audience of investors and analysts through a discussion on how our Company has prudently managed the fundamental elements of the business, how we have continued to invest in and enhance our business model over the past few years, and how we are managing and positioning each businesses line for future growth. We demonstrated how, by not changing course or succumbing to the easy growth strategies of the recent pre-crisis years, we have been able to manage well through a very challenging and uncertain economic environment, while positioning the Company to gain market share, produce industry-leading revenue growth, and achieve superior financial performance. I would not exchange our position in the industry for any other. We are moving forward with a sense of optimism and enthusiasm, focused on growing our businesses, sustaining an engaged and performance-driven workforce that provides superior service to our customers and communities and, importantly, creating long-term value for our shareholders.”

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 6

INCOME STATEMENT HIGHLIGHTS																														Table 2
														Percent				Percent
														Change				Change
(Taxable-equivalent basis, $ in millions,		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD				Percent
except per-share data)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Net interest income		$	2,477			$	2,409			$	2,157				2.8				14.8			$	7,289			$	6,356				14.7
Noninterest income			2,110				2,110				2,093				—				.8				6,138				5,936				3.4
Total net revenue			4,587				4,519				4,250				1.5				7.9				13,427				12,292				9.2
Noninterest expense			2,385				2,377				2,053				.3				16.2				6,898				6,053				14.0
Income before provision and taxes			2,202				2,142				2,197				2.8				.2				6,529				6,239				4.6
Provision for credit losses			995				1,139				1,456				(12.6	)			(31.7	)			3,444				4,169				(17.4	)
Income before taxes			1,207				1,003				741				20.3				62.9				3,085				2,070				49.0
Taxable-equivalent adjustment			53				52				50				1.9				6.0				156				148				5.4
Applicable income taxes			260				199				86				30.7				nm				620				287				nm
Net income			894				752				605				18.9				47.8				2,309				1,635				41.2
Net (income) loss attributable to noncontrolling interests			14				14				(2	)			—				nm				34				(32	)			nm
Net income attributable to U.S. Bancorp		$	908			$	766			$	603				18.5				50.6			$	2,343			$	1,603				46.2
Net income applicable to U.S. Bancorp common shareholders		$	871			$	862			$	583				1.0				49.4			$	2,381			$	1,223				94.7
Diluted earnings per common share		$	.45			$	.45			$	.30				—				50.0			$	1.24			$	.66				87.9

     Net income attributable to U.S. Bancorp for the third quarter of 2010 was $305 million (50.6 percent) higher than the same period of 2009 and $142 million (18.5 percent) higher than the second quarter of 2010. The increase in net income year-over-year was principally the result of strong growth in total net revenue, driven by an increase in both net interest income and fee-based revenue, and a lower provision for credit losses. These positive variances were partially offset by an increase in total noninterest expense. Compared with the prior quarter, favorable variances in total net revenue and the provision for credit losses were partly offset by a small increase in total noninterest expense.

     Total net revenue on a taxable-equivalent basis for the third quarter of 2010 was $4,587 million; $337 million (7.9 percent) higher than the third quarter of 2009, reflecting a 14.8 percent increase in net interest income and a .8 percent increase in noninterest income. The increase in net interest income year-over-year was largely the result of an increase in average earning assets, primarily related to acquisitions, and continued growth in lower cost core deposit funding. Noninterest income increased year-over-year as a result of higher payments-related revenue, commercial products revenue and mortgage banking revenue. Total net revenue on a taxable-equivalent basis was $68 million (1.5 percent) higher on a linked quarter

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 7

basis, due to a 2.8 percent increase in net interest income, driven by higher average loan and loans held-for-sale balances.

     Total noninterest expense in the third quarter of 2010 was $2,385 million; $332 million (16.2 percent) higher than the third quarter of 2009, and $8 million (.3 percent) higher than the second quarter of 2010. The increase in total noninterest expense year-over-year was primarily due to the impact of acquisitions and compensation and employee benefits expense. Total noninterest expense was relatively flat compared with the second quarter of 2010 with favorable variances in most expense categories being partially offset by higher compensation, marketing and business development and professional services expense.

     The Company’s provision for credit losses declined from a year ago and on a linked quarter basis. The provision for credit losses for the third quarter of 2010 was $995 million, $144 million lower than the second quarter of 2010 and $461 million lower than the third quarter of 2009. The provision for credit losses equaled net charge-offs in the third quarter of 2010, but exceeded net charge-offs by $25 million in the second quarter of 2010, and by $415 million in the third quarter of 2009. Net charge-offs in the third quarter of 2010 were $995 million, lower than the $1,114 million in the second quarter of 2010, and the $1,041 million in the third quarter of 2009. Given current economic conditions, the Company expects the level of net charge-offs to continue to trend lower in the fourth quarter of 2010.

     Nonperforming assets include assets originated by the Company, as well as loans and other real estate acquired under FDIC loss sharing agreements (“covered assets”) that substantially reduce the risk of credit losses to the Company. Excluding covered assets, nonperforming assets were $3,563 million at September 30, 2010, $3,734 million at June 30, 2010, and $3,720 million at September 30, 2009. The decline on both a linked quarter and year-over-year basis was led by reductions in the construction and land development nonperforming portfolios, as the Company continued to resolve and reduce exposure to these problem assets. There was also improvement in the other commercial portfolios as the economy began to stabilize. However, there is continued stress in the residential mortgage and credit card portfolios, as well as an increase in foreclosed properties, due to the impact of the overall duration of the economic slowdown. Covered nonperforming assets were $1,851 million at September 30, 2010, $2,151 million at June 30, 2010, and $672 million at September 30, 2009. The majority of the nonperforming covered assets were considered credit-impaired at acquisition and were recorded at their estimated fair value at the date of acquisition. The year-over-year increase in covered nonperforming assets was due to the fourth quarter of 2009 acquisition of the banking operations of First Bank of Oak Park Corporation (“FBOP”). The ratio of the allowance for

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 8

credit losses to period-end loans, excluding covered loans, was 3.10 percent at September 30, 2010, compared with 3.18 percent at June 30, 2010, and 2.88 percent at September 30, 2009. The ratio of the allowance for credit losses to period-end loans, including covered loans, was 2.85 percent at September 30, 2010, compared with 2.89 percent at June 30, 2010, and 2.73 percent at September 30, 2009. The Company expects total nonperforming assets, excluding covered assets, to continue to trend lower in the fourth quarter.

NET INTEREST INCOME																														Table 3
														Change				Change
		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD
(Taxable-equivalent basis; $ in millions)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Components of net interest income
Income on earning assets		$	3,132			$	3,049			$	2,909			$	83			$	223			$	9,227			$	8,722			$	505
Expense on interest-bearing liabilities			655				640				752				15				(97	)			1,938				2,366				(428	)
Net interest income		$	2,477			$	2,409			$	2,157			$	68			$	320			$	7,289			$	6,356			$	933
Average yields and rates paid
Earning assets yield			4.95	%			4.94	%			4.94	%			.01	%			.01	%			4.94	%			4.97	%			(.03	)%
Rate paid on interest-bearing liabilities			1.25				1.25				1.54				—				(.29	)			1.25				1.63				(.38	)
Gross interest margin			3.70	%			3.69	%			3.40	%			.01	%			.30	%			3.69	%			3.34	%			.35	%
Net interest margin			3.91	%			3.90	%			3.67	%			.01	%			.24	%			3.90	%			3.62	%			.28	%
Average balances
Investment securities (a)		$	47,870			$	47,140			$	42,558			$	730			$	5,312			$	47,080			$	42,357			$	4,723
Loans			192,541				191,161				181,968				1,380				10,573				192,192				183,837				8,355
Earning assets			251,916				247,446				234,111				4,470				17,805				249,408				234,559				14,849
Interest-bearing liabilities			208,653				205,929				194,202				2,724				14,451				208,037				193,649				14,388
Net free funds (b)			43,263				41,517				39,909				1,746				3,354				41,371				40,910				461

Net Interest Income

     Net interest income on a taxable-equivalent basis in the third quarter of 2010 was $2,477 million, compared with $2,157 million in the third quarter of 2009, an increase of $320 million (14.8 percent). The increase was the result of growth in average earning assets and an expanded net interest margin. Average earning assets were $17.8 billion (7.6 percent) higher than the third quarter of 2009, driven by increases of $10.6 billion (5.8 percent) in average loans and $5.3 billion (12.5 percent) in average investment securities, while the net interest margin was higher principally due to the impact of favorable funding rates and improved credit spreads. Net interest income increased $68 million (2.8 percent) on a linked quarter basis,

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 9

mainly as a result of an increase in average earning assets and day basis. During the third quarter of 2010, the net interest margin was 3.91 percent, compared with 3.67 percent in the third quarter of 2009 and 3.90 percent in the second quarter of 2010.

AVERAGE LOANS																														Table 4
														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD				Percent
($ in millions)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Commercial		$	40,726			$	40,095			$	44,655				1.6				(8.8	)		$	40,550			$	47,109				(13.9	)
Lease financing			6,058				6,245				6,567				(3.0	)			(7.8	)			6,248				6,678				(6.4	)
Total commercial			46,784				46,340				51,222				1.0				(8.7	)			46,798				53,787				(13.0	)
Commercial mortgages			26,008				25,606				24,296				1.6				7.0				25,688				23,911				7.4
Construction and development			8,182				8,558				9,533				(4.4	)			(14.2	)			8,477				9,742				(13.0	)
Total commercial real estate			34,190				34,164				33,829				.1				1.1				34,165				33,653				1.5
Residential mortgages			27,890				26,821				24,405				4.0				14.3				27,045				24,096				12.2
Credit card			16,510				16,329				15,387				1.1				7.3				16,403				14,444				13.6
Retail leasing			4,289				4,364				4,822				(1.7	)			(11.1	)			4,387				4,989				(12.1	)
Home equity and second mortgages			19,289				19,332				19,368				(.2	)			(.4	)			19,340				19,298				.2
Other retail			24,281				23,357				22,647				4.0				7.2				23,664				22,795				3.8
Total retail			64,369				63,382				62,224				1.6				3.4				63,794				61,526				3.7
Total loans, excluding covered loans			173,233				170,707				171,680				1.5				.9				171,802				173,062				(.7	)
Covered loans			19,308				20,454				10,288				(5.6	)			87.7				20,390				10,775				89.2
Total loans		$	192,541			$	191,161			$	181,968				.7				5.8			$	192,192			$	183,837				4.5

     Total average loans were $10.6 billion (5.8 percent) higher in the third quarter of 2010 than the third quarter of 2009, driven by the FBOP acquisition and growth in residential mortgages (14.3 percent) and retail loans (3.4 percent). These increases were partially offset by an 8.7 percent decline in total average commercial loans, principally due to lower utilization of existing commitments and reduced demand for new loans. Year-over-year retail loan growth was driven by increases in credit cards and installment loans. Included in the growth of average credit card loans outstanding were portfolio purchases of $1.3 billion in the third quarter of 2009 and $.5 billion in the second quarter of 2010. Total average loans were $1.4 billion (.7 percent) higher in the third quarter of 2010 than the second quarter of 2010, as increases in the majority of loan categories, principally residential mortgages (4.0 percent) and other retail loans (4.0 percent), were partially offset by lower covered loans (5.6 percent). Relatively stable commitment utilization by corporate

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 10

customers and a higher demand for new loans from credit-worthy borrowers resulted in a modest increase in total commercial and commercial real estate balances.

     Average investment securities in the third quarter of 2010 were $5.3 billion (12.5 percent) higher year-over-year and $730 million (1.5 percent) higher than the prior quarter. The increases over the prior year and linked quarter were primarily due to purchases of U.S. government agency-backed securities.

AVERAGE DEPOSITS																														Table 5
														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD				Percent
($ in millions)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Noninterest-bearing deposits		$	39,732			$	39,917			$	36,982				(.5	)			7.4			$	39,223			$	36,800				6.6
Interest-bearing savings deposits
Interest checking			39,308				39,503				38,218				(.5	)			2.9				39,599				35,906				10.3
Money market savings			38,005				40,256				33,387				(5.6	)			13.8				39,710				29,541				34.4
Savings accounts			22,008				20,035				13,824				9.8				59.2				20,038				12,160				64.8
Total of savings deposits			99,321				99,794				85,429				(.5	)			16.3				99,347				77,607				28.0
Time certificates of deposit less than $100,000			16,024				16,980				16,985				(5.6	)			(5.7	)			17,105				17,691				(3.3	)
Time deposits greater than $100,000			27,583				26,627				26,966				3.6				2.3				27,162				31,293				(13.2	)
Total interest-bearing deposits			142,928				143,401				129,380				(.3	)			10.5				143,614				126,591				13.4
Total deposits		$	182,660			$	183,318			$	166,362				(.4	)			9.8			$	182,837			$	163,391				11.9

     Average total deposits for the third quarter of 2010 were $16.3 billion (9.8 percent) higher than the third quarter of 2009. Excluding deposits from acquisitions, average total deposits increased $4.5 billion (2.7 percent) over the third quarter of 2009. Noninterest-bearing deposits increased $2.8 billion (7.4 percent) year-over-year, due to growth in the Consumer and Wholesale Banking business line balances and the impact of acquisitions. Average total savings deposits were $13.9 billion (16.3 percent) higher year-over-year, the result of growth in Consumer Banking, Wholesale Banking, institutional and corporate trust balances, and the impact of acquisitions. Average time certificates of deposit less than $100,000 were $961 million (5.7 percent) lower year-over-year, as a decrease in Consumer Banking balances was partially offset by acquisition-related growth. Average time deposits greater than $100,000 were higher by $617 million (2.3 percent), reflecting the impact of acquisitions, partially offset by a decrease in required overall wholesale funding.

     Average total deposits decreased $658 million (.4 percent) from the second quarter of 2010, primarily due to declines in average time deposits less than $100,000 of $956 million (5.6 percent) and average total

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 11

savings deposits of $473 million (.5 percent), partially offset by an increase in average time deposits over $100,000 of $956 million (3.6 percent). Total average savings deposits decreased on a linked quarter basis, principally due to a decline in corporate trust and institutional trust and broker-dealer balances, partially offset by higher Consumer Banking balances. The reduction in average time certificates of deposit less than $100,000 reflected maturities and fewer renewals given the low interest rate environment, while the increase in average time certificates of deposit greater than $100,000 reflected wholesale funding decisions.

NONINTEREST INCOME																														Table 6
														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD				Percent
($ in millions)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Credit and debit card revenue		$	274			$	266			$	267				3.0				2.6			$	798			$	782				2.0
Corporate payment products revenue			191				178				181				7.3				5.5				537				503				6.8
Merchant processing services			318				320				300				(.6	)			6.0				930				836				11.2
ATM processing services			105				108				103				(2.8	)			1.9				318				309				2.9
Trust and investment management fees			267				267				293				—				(8.9	)			798				891				(10.4	)
Deposit service charges			160				199				256				(19.6	)			(37.5	)			566				732				(22.7	)
Treasury management fees			139				145				141				(4.1	)			(1.4	)			421				420				.2
Commercial products revenue			197				205				157				(3.9	)			25.5				563				430				30.9
Mortgage banking revenue			310				243				276				27.6				12.3				753				817				(7.8	)
Investment products fees and commissions			27				30				27				(10.0	)			—				82				82				—
Securities gains (losses), net			(9	)			(21	)			(76	)			57.1				88.2				(64	)			(293	)			78.2
Other			131				170				168				(22.9	)			(22.0	)			436				427				2.1
Total noninterest income		$	2,110			$	2,110			$	2,093				—				.8			$	6,138			$	5,936				3.4

Noninterest Income

     Third quarter noninterest income was $2,110 million; $17 million (.8 percent) higher than the third quarter of 2009 and equal to the second quarter of 2010. Year-over-year, noninterest income benefited from payments-related revenues, which were $35 million (4.7 percent) higher, largely due to increased transaction volumes, and a $40 million (25.5 percent) increase in commercial products revenue, attributable to higher standby letters of credit fees, commercial loan fees and syndication revenue. Additionally, mortgage banking revenue was higher than the same quarter of 2009 by $34 million (12.3 percent), driven by higher production and servicing revenue, partially offset by an unfavorable net change in the valuation of mortgage servicing rights (“MSRs”) and related economic hedging activities. Total noninterest income was also favorably impacted by a year-over-year change in net securities losses, which were $67 million (88.2

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 12

percent) lower than the prior year, primarily due to lower impairments. Trust and investment management fees declined $26 million (8.9 percent) year-over-year, as low interest rates negatively impacted money market investment fees and lower money market fund balances led to a decline in account-level fees. Deposit service charges decreased $96 million (37.5 percent) as a result of revised overdraft fee policies and lower overdraft incidences. Other income was $37 million (22.0 percent) lower than the prior year primarily due to the third quarter of 2009 gain related to the Company’s investment in Visa Inc. and lower customer derivative revenue, partially offset by improved retail lease residual valuation income and higher income from equity investments.

     Noninterest income was $2,110 million in both the third quarter and second quarter of 2010. Payments-related revenue increased $19 million (2.5 percent), primarily driven by seasonally higher transaction volumes in corporate payment products. Mortgage banking revenue increased $67 million (27.6 percent) due to strong mortgage production, partially offset by an unfavorable net change in the valuation of MSRs and related economic hedging activities. The $12 million (57.1 percent) favorable change in net securities losses on a linked quarter basis was primarily due to higher securities gains in the current quarter. Offsetting these favorable variances on a linked quarter basis were declines in deposit service charges of $39 million (19.6 percent), reflecting the impact of revised overdraft fee policies, treasury management fees of $6 million (4.1 percent), owing to seasonally lower government-related processing, and commercial products revenue of $8 million (3.9 percent), mainly due to lower syndication fees related to tax-advantaged investment transactions. In addition, other income was $39 million (22.9 percent) lower primarily due to a $28 million gain in the second quarter of 2010 related to the Company’s investment in Visa Inc. and lower customer derivative revenue, partially offset by improved retail lease residual valuation income.

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 13

NONINTEREST EXPENSE																														Table 7
														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q10 vs				3Q10 vs				YTD				YTD				Percent
($ in millions)		2010				2010				2009				2Q10				3Q09				2010				2009				Change
Compensation		$	973			$	946			$	769				2.9				26.5			$	2,780			$	2,319				19.9
Employee benefits			171				172				134				(.6	)			27.6				523				429				21.9
Net occupancy and equipment			229				226				203				1.3				12.8				682				622				9.6
Professional services			78				73				63				6.8				23.8				209				174				20.1
Marketing and business development			108				86				137				25.6				(21.2	)			254				273				(7.0	)
Technology and communications			186				186				175				—				6.3				557				487				14.4
Postage, printing and supplies			74				75				72				(1.3	)			2.8				223				218				2.3
Other intangibles			90				91				94				(1.1	)			(4.3	)			278				280				(.7	)
Other			476				522				406				(8.8	)			17.2				1,392				1,251				11.3
Total noninterest expense		$	2,385			$	2,377			$	2,053				.3				16.2			$	6,898			$	6,053				14.0

Noninterest Expense

     Noninterest expense in the third quarter of 2010 totaled $2,385 million, an increase of $332 million (16.2 percent) over the third quarter of 2009, and an $8 million increase (.3 percent) over the second quarter of 2010. The increase in noninterest expense over a year ago was principally due to the impact of acquisitions and increased compensation expense. Compensation and employee benefits expense increased by $204 million (26.5 percent) and $37 million (27.6 percent), respectively, year-over-year, primarily because of acquisitions, higher incentives related to the Company’s improved financial results, merit increases and the five percent cost reduction program that was in effect during the third quarter of 2009. Net occupancy and equipment expense increased $26 million (12.8 percent), principally due to acquisitions and other business initiatives. Professional services expense was $15 million (23.8 percent) higher year-over-year, due to acquisitions, payments-related projects and legal costs. Technology and communications expense increased $11 million (6.3 percent), as a result of business initiatives and volume increases across various business lines. Other expense was higher by $70 million (17.2 percent) largely due to increases in costs related to investments in affordable housing and other real estate owned. Marketing and business development expense decreased $29 million (21.2 percent) from the prior year mainly due to payments-related initiatives during 2009, partially offset by a higher contribution to the Company’s charitable foundation in the third quarter of 2010.

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 14

     Noninterest expense was relatively flat on a linked quarter basis, increasing $8 million (.3 percent). Compensation expense increased $27 million (2.9 percent), principally due to higher incentives and commissions. Professional services expense was $5 million (6.8 percent) higher on a linked quarter basis, primarily due to payments-related initiatives. Marketing and business development expense was higher by $22 million (25.6 percent), compared with the second quarter of 2010, reflecting an increase in the Company’s contribution to its charitable foundation, partially offset by the timing of credit card product initiatives and other marketing campaigns. Offsetting these unfavorable variances, was a $46 million (8.8 percent) decrease in other expense on a linked quarter basis, primarily due to a reduction in conversion costs related to the FBOP acquisition and the impact of debt extinguishment costs associated with the income trust securities exchange that was completed and recorded in the prior quarter.

Provision for Income Taxes

     The provision for income taxes for the third quarter of 2010 resulted in a tax rate on a taxable-equivalent basis of 25.9 percent (effective tax rate of 22.5 percent), compared with 18.4 percent (effective tax rate of 12.4 percent) in the third quarter of 2009 and 25.0 percent (effective tax rate of 20.9 percent) in the second quarter of 2010. The increases in effective tax rate principally reflected the marginal impact of higher pretax earnings.

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 15

ALLOWANCE FOR CREDIT LOSSES																		Table 8
		3Q				2Q				1Q				4Q				3Q
($ in millions)		2010				2010				2010				2009				2009
Balance, beginning of period		$	5,536			$	5,439			$	5,264			$	4,986			$	4,571
Net charge-offs
Commercial			153				223				243				250				200
Lease financing			18				22				34				33				44
Total commercial			171				245				277				283				244
Commercial mortgages			113				71				46				30				30
Construction and development			94				156				146				144				159
Total commercial real estate			207				227				192				174				189
Residential mortgages			132				138				145				153				129
Credit card			296				317				312				285				271
Retail leasing			2				4				5				5				8
Home equity and second mortgages			79				79				90				96				89
Other retail			101				99				111				111				111
Total retail			478				499				518				497				479
Total net charge-offs, excluding covered loans			988				1,109				1,132				1,107				1,041
Covered loans			7				5				3				3				—
Total net charge-offs			995				1,114				1,135				1,110				1,041
Provision for credit losses			995				1,139				1,310				1,388				1,456
Net change for credit losses to be reimbursed by the FDIC			4				72				—				—				—
Balance, end of period		$	5,540			$	5,536			$	5,439			$	5,264			$	4,986
Components
Allowance for loan losses, excluding losses to be reimbursed by the FDIC		$	5,245			$	5,248			$	5,235			$	5,079			$	4,825
Allowance for credit losses to be reimbursed by the FDIC			76				72				—				—				—
Liability for unfunded credit commitments			219				216				204				185				161
Total allowance for credit losses		$	5,540			$	5,536			$	5,439			$	5,264			$	4,986
Gross charge-offs		$	1,069			$	1,186			$	1,206			$	1,174			$	1,105
Gross recoveries		$	74			$	72			$	71			$	64			$	64
Allowance for credit losses as a percentage of
Period-end loans, excluding covered loans			3.10				3.18				3.20				3.04				2.88
Nonperforming loans, excluding covered loans			181				168				156				153				150
Nonperforming assets, excluding covered assets			153				146				136				135				134
Period-end loans			2.85				2.89				2.85				2.70				2.73
Nonperforming loans			133				120				109				110				136
Nonperforming assets			102				94				85				89				114

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 16

Credit Quality

     Net charge-offs and nonperforming assets declined on a linked quarter basis as economic conditions moderated. The allowance for credit losses was $5,540 million at September 30, 2010, compared with $5,536 million at June 30, 2010, and $4,986 million at September 30, 2009. Total net charge-offs in the third quarter of 2010 were $995 million, compared with $1,114 million in the second quarter of 2010, and $1,041 million in the third quarter of 2009. The decrease in total net charge-offs was principally due to improvement in the commercial and commercial real estate portfolios. The Company recorded $995 million of provision for credit losses, equal to net charge-offs during the third quarter of 2010. The allowance for credit losses reimbursable by the FDIC was higher by $4 million, which increased the total allowance for credit losses by the same amount.

     Commercial and commercial real estate loan net charge-offs decreased to $378 million in the third quarter of 2010 (1.85 percent of average loans outstanding) compared with $472 million (2.35 percent of average loans outstanding) in the second quarter of 2010 and $433 million (2.02 percent of average loans outstanding) in the third quarter of 2009. The decrease primarily reflected the resolution of certain major construction projects and the impact of more stable economic conditions on the Company’s commercial loan portfolios.

     Residential mortgage loan net charge-offs decreased to $132 million (1.88 percent of average loans outstanding) in the third quarter of 2010 from $138 million (2.06 percent of average loans outstanding) in the second quarter of 2010, reflecting the positive impact of restructuring programs. Residential mortgage loan net charge-offs in the current quarter remained higher, however, than the $129 million (2.10 percent of average loans outstanding) recorded in the third quarter of 2009. Total retail loan net charge-offs were $478 million (2.95 percent of average loans outstanding) in the third quarter of 2010, lower than the $499 million (3.16 percent of average loans outstanding) in the second quarter of 2010 and the $479 million (3.05 percent of average loans outstanding) in the third quarter of 2009. The level of retail loan net-charge-offs was impacted by credit card portfolio purchases recorded at fair value in the beginning in the third quarter of 2009.

     The ratio of the allowance for credit losses to period-end loans was 2.85 percent (3.10 percent excluding covered loans) at September 30, 2010, compared with 2.89 percent (3.18 percent excluding covered loans) at June 30, 2010, and 2.73 percent (2.88 percent excluding covered loans) at September 30, 2009. The ratio of the allowance for credit losses to nonperforming loans was 133 percent (181 percent excluding covered

(MORE)

U.S. Bancorp Reports Third quarter 2010 Results
October 20, 2010
Page 17

loans) at September 30, 2010, compared with 120 percent (168 percent excluding covered loans) at June 30, 2010, and 136 percent (150 percent excluding covered loans) at September 30, 2009.

CREDIT RATIOS																		Table 9
		3Q				2Q				1Q				4Q				3Q
(Percent)		2010				2010				2010				2009				2009
Net charge-offs ratios (a)
Commercial			1.49				2.23				2.41				2.28				1.78
Lease financing			1.18				1.41				2.14				2.02				2.66
Total commercial			1.45				2.12				2.38				2.25				1.89
Commercial mortgages			1.72				1.11				.73				.48				.49
Construction and development			4.56				7.31				6.80				6.24				6.62
Total commercial real estate			2.40				2.67				2.28				2.03				2.22
Residential mortgages			1.88				2.06				2.23				2.37				2.10
Credit card (b)			7.11				7.79				7.73				6.89				6.99
Retail leasing			.19				.37				.45				.43				.66
Home equity and second mortgages			1.62				1.64				1.88				1.96				1.82
Other retail			1.65				1.70				1.93				1.91				1.94
Total retail			2.95				3.16				3.30				3.11				3.05
Total net charge-offs, excluding covered loans			2.26				2.61				2.68				2.54				2.41
Covered loans			.14				.10				.06				.06				—
Total net charge-offs			2.05				2.34				2.39				2.30				2.27
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans (c)
Commercial			.19				.21				.18				.22				.17
Commercial real estate			.05				.09				.01				.02				.12
Residential mortgages			1.75				1.85				2.26				2.80				2.32
Retail			.85				.95				1.00				1.07				1.00
Total loans, excluding covered loans			.66				.72				.78				.88				.78
Covered loans			4.96				4.91				3.90				3.59				8.18
Total loans			1.08				1.16				1.12				1.19				1.16
Delinquent loan ratios - 90 days or more past due including nonperforming loans (c)
Commercial			1.67				1.89				2.06				2.25				2.19
Commercial real estate			4.20				4.84				5.37				5.22				5.22
Residential mortgages			3.90				4.08				4.33				4.59				3.86
Retail			1.26				1.32				1.37				1.39				1.28
Total loans, excluding covered loans			2.37				2.61				2.82				2.87				2.69
Covered loans			11.12				11.72				11.19				9.76				11.97
Total loans			3.23				3.56				3.74				3.64				3.18